Bitcoin trading is slowly ticking price up as profit takers close their short positions. The outlook remains cautiously optimistic without taking a strong position until we see confirmation of the larger trend.
Bitcoin Price Analysis
Time of analysis: 04h27 UTC
Bitstamp 1-Hour Chart
From the analysis pages of xbt.social, earlier today:
The price pattern since the truncated low is unusual. The waves are well articulated although the price pattern still resembles the curving-then-drop, as circled elsewhere in the chart. It is not suggested that the current pattern will do this, but merely that it might. For now MACD (bottom) is holding above its zero line, and RSI has reverse diverged to the the downside – forcing an updraft.
Although our longer-term analysis points to a high probability of advance from the support floor, we’re still assuming that the present pattern is corrective. Remaining cautious keeps us on the lookout for signs of potential decline into a larger Bitcoin-in-Crisis downtrend.
Despite the wave pushing higher in the chart, there is a constant large volume of sell orders just above price. The interpretation is that these are shorts being covered rather than traders positioning for decline. This outlook might be wrong, but the fact that those orders are being bought up in the chart, implies bullish sentiment.
Another potential scenario, and one that is common in the Bitcoin chart, is that the market may buy price upwards through the mass of sell orders and then lose momentum as all the buyers have spent their ammunition. The subsequent gradual decline back toward the support floor would be the final tapering end of a base wave. Should this scenario come to pass we could expect the classic xbt.social buy signal at the base wave’s terminal point where it launches into advance.
Patient waiting is all we have to do.
Analysis will be updated at 15h00 UTC
It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong. – George Soros
Friday trade often meanders as a result of end-of-week re-organisation of positions. The predominant activity since yesterday has been buying, despite a large volume of sell orders. If the majority of short sellers decide to start closing position at market price today (as opposed to using stop orders) we may see a strong surge develop. Otherwise, price may just continue slowly ticking upward, with intermittent downward corrections.
Bitfinex orderbook depth and Buy/Sell Volume:
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The writer trades Bitcoin. Trade and Investment is risky. CCN.LA accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.
Bitcoin price charts from TradingView.
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